Post a New Question

Math

posted by .

How should I approach this, what formula do I use to solve and how do I solve it?

How long, to the nearest year, will it take me to become a millionaire if I invest $3000 at 9% interest compounded continuously?

Thanks

  • Math -

    I got the wrong answer of 12 years

  • Math -

    $3000 invested at continuous interest rate of 9% (=0.09) for 12 years yield a future value of
    3000*e^(0.09*12)
    =8834
    If you want to be a millionaire, you'll need to wait a little longer!

    3000*e^(0.09*n)=1000000
    e^(0.09n)=3000/1000000=1000/3
    Take natural log on both sides
    0.09n=ln(1000/3)
    n=ln(1000/3)/0.09=64.55
    =approx. 64 years & 5 months and a half

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

More Related Questions

Post a New Question